Short answer: if your business can’t keep up with a loan or line of credit, talk to the lender before the account goes into default. Lenders usually have more options early than after an account is sent to collections.
What can happen if you fall behind
- Late fees and a higher interest rate.
- The lender can freeze or close a line of credit.
- If you signed a personal guarantee, the lender can come after you personally, not just the business.
- The account can be sent to collections or to court.
What a lender may agree to
- A lower payment for a set period.
- A longer term, so each payment is smaller.
- Turning a line of credit into a loan with a fixed payment and payoff date.
- A payoff for less than the full balance, usually as a lump sum.
What to do first
- Find the loan agreement and check whether you signed a personal guarantee.
- List every business debt with its balance and monthly payment.
- Don’t take a new loan or cash advance to cover this one without knowing the full cost.
- Call us. The first call is free.
How Angels of Debt helps
We review your agreements, contact the lender, and work on a payment plan or settlement the business can live with. No upfront fees: we don’t get paid unless we settle.
Talk to us
Call (888) 514-1085, text 718-766-5193, or email help@angelsofdebt.com. We’ll tell you plainly if we can’t help.
Results vary and are not guaranteed. Angels of Debt is not a lender. This article is general information, not advice about your specific situation.